Release funds to local bodies as per SFC recommendations: FGG

Hyderabad: The Forum for Good Governance (FGG) on Wednesday urged Governor Tamilisai Soundararajan to direct the government to release the 11 per cent funds from the State budget to the local bodies as per the recommendations of State Finance Commission.

FGG Secretary M Padmanabha Reddy said that the State Finance Commission has sent its report with recommendations in October 2020 to the Governor, who later sent it to the government for action. He alleged that the government has not taken any action on the recommendations of SFC. The local bodies which should get funds as a right were looking towards the government for charity.

The recommendations include transfer of 11 per cent of net State own revenue to local bodies (neighbouring Karnataka is transferring 48 per cent of the revenue receipts to local bodies), new Gram Panchayats, Mandal Praja Parishads and Zilla Parishads should be given special grants for their infrastructure development, division of pooled resources among Panchayats and Urban Local Bodies should be in the ratio of 60:40 respectively. Distribution of funds should be on the basis of population as per 2011 census.

Transfer of funds should begin in the month of April and end by December, which is in ten instalments. Release should be absolute without deduction/cuts, re-carpeting BT roads, timely repairs to the roads to meet the citizens expectations, accountability in spending public funds, annual audit and annual maintenance of public roads to the trust of citizens etc. Padmanabha Reddy said that the government presented a budget of Rs 1.76 lakh crore in 2021-22 and as per the SFC Rs 20,000 crore should be released to GPs and ULBs as their rightful share.

However, the government has not taken any action on recommendations of SFC, which is a blatant violation of Article 243-I of the Constitution. "Centre was giving Rs 1,365 crore per annum to Panchayats and the State government was also providing Rs 1,365 per annum which means the government should release Rs 114 crore to GPs. The government claims that Rs 300 crore is being spent needs clarification," he added. He further said that the GHMC which has 30 per cent of population of the State generates 70 per cent of state's revenue but is starved of funds.

The annual budget of GHMC is a sad reflection of the government's apathy towards the people living in Hyderabad. The position of GHMC is so bad that they are unable to give salaries to the employees. The FGG wanted the governor to direct the chief secretary/finance secretary to take actions on the recommendations of SFC and release sufficient funds to GHMC to attend the urgent civic amenities.